Commercial Cleaning Business Insurance
Getting insurance for your commercial cleaning business is essential.
Commercial cleaning businesses need to be protected against things like claims of property damage, employee injuries, and breaches of contracts.
For example, your business doesn’t turn up for a cleaning on the agreed-upon date, or an employee falls ill after using a certain cleaning product.
We’ll help you find the most personalized and affordable coverage for your unique business.
Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.
Best Insurance for a Commercial Cleaning Business
General liability insurance is — generally speaking — one of the most important insurance policies for commercial cleaning businesses.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
While general liability is an essential part of any commercial cleaning business’s coverage, it cannot single-handedly protect it from all the risks it faces. Hence, several additional policies are often used as well:
- Workers’ compensation insurance
- Commercial auto insurance
- Commercial property insurance
- Commercial umbrella insurance
The insurance providers from which you can buy coverage are commonly sorted into one of two distinct categories, each with their own unique approach:
- Traditional brick-and-mortar insurers: These providers, such as The Hartford and Hiscox, are known for having brick-and-mortar locations where insurance agents help customers to find their optimal quote.
- Online insurers: These providers, such as Next and Tivly, are known for their use of a purely online approach to insurance and using AI to provide highly tailored and reliable insurance at a far more competitive price than traditional insurers due to their lower overheads.
Find the Right Policy at the Best Rate
We’ve reviewed and tested the major business insurance providers. Let us help you find the best match for your business.
Cost of General Liability Insurance
On average, commercial cleaning businesses in America spend between $500 - $1,500 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a commercial cleaning business to other professional industries using the graph below:
Several factors will determine the price of your policy. These include your:
- Number of employees
- Per-occurrence limit
- General aggregate limit
You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.
A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.
Start an Online Quote for Insurance
Finding the most affordable premium starts with getting accurate quotes from highly rated providers.
Common Situations That General Liability Insurance May Cover for a Commercial Cleaning Business
Example 1: While visiting your building for a consultation, a customer slips on a wet floor tile in the restroom, breaks a wrist, and decides to sue your company. General liability insurance would pay for your legal defense and any required settlement.
Example 2: A local competitor accuses you of libeling her business in your latest marketing campaign. While you disagree with the claim, you know you want to hire an attorney immediately. General liability insurance would cover your legal fees and any required settlement.
Example 3: One of your competitors believes your new logo is too similar to his company’s logo and threatens to sue. General liability insurance would pay for your legal defense and any required settlement.
Check out our review of the Best Small Business Insurance Companies.
Other Types of Coverage Commercial Cleaning Businesses Need
While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some other types of insurance all commercial cleaning businesses should obtain:
Workers’ Compensation Insurance
If you have any employees, most states will require you to carry workers’ compensation insurance for both part-time and full-time workers. This coverage protects your employees if they become injured at work or fall ill after a work-related accident. It not only covers an employee’s medical bills and lost wages if they need time to recover but also any disability or death benefits stemming from a work-related accident.
Commercial Auto Insurance
Any vehicle you use primarily for business requires commercial auto insurance to protect the vehicle, driver, and others on the road in the event of an accident. Be sure to select a policy that covers not only accident-related vehicle repair costs and medical treatment for anyone injured but also sufficient protection for any business materials you carry in your vehicle.
Commercial Property Insurance
You made a major investment in your equipment, cleaning supplies, company vehicles, and real estate. In the event of a fire, theft, or natural disaster, commercial property insurance would cover the cost of repairing or replacing your business-related property. This includes structural damage to your building as well as the business materials you store there.
Commercial Umbrella Insurance
While your general liability insurance policy covers most claims, some accidents or lawsuits may be so catastrophic that they threaten to exhaust the limits of your primary coverage. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary policy.
Additional Steps To Protect Your Business
Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.
Here are several things you can do to better protect your commercial cleaning business:
- Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
- Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
- Stay up to date with business licensing.
- Maintain your corporate veil.
Business Insurance Is the Best Way to Protect Your Business
If you're starting a new business, then you need business insurance. It's as simple as that. The protection offered by an LLC will protect your personal assets, but your business's assets are still open to liability in the case of a lawsuit or other loss.
Be sure that everything you've built is safe by getting business insurance.
Commercial Cleaning Business Insurance FAQ
Can I buy business insurance online for my commercial cleaning business?
Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.
What is included in a business owner’s policy?
A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.
What is the difference between business insurance and general liability insurance?
"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.
Do I need insurance before I start a commercial cleaning business?
Put simply, yes. The financial security of your commercial cleaning business will be threatened by the risks inherent in this industry. Acquiring proper business insurance from the outset is the best way to safeguard your business from these risks.
Additionally, your commercial cleaning businesses may be required to purchase specific policies (e.g., workers’ compensation and commercial auto) in order to operate lawfully.
Will insurance protect my commercial cleaning business from everything?
Not necessarily. Certain exceptions may be written directly into your commercial cleaning business insurance policy, and some perils may be entirely uninsurable.
Do I need business insurance if I already have an LLC?
Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.
An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.